HomeContributorsTechnical AnalysisEthereum: Unable to Rally as New Future ETFs Volumes Disappoint

Ethereum: Unable to Rally as New Future ETFs Volumes Disappoint

  • Cryptos struggle as relentless Treasury selloff continues; 10-year yield rises 5.2bps to 4.731%
  • Proshares Ethereum ETF (EETH) traded only 21,000 shares
  • VanEck’s Ethereum Strategy ETF (EFUT) traded only 29,000 shares

Over the past several months the focus in the cryptoverse has been on whether the SEC will approve a spot Bitcoin ETF. Hampered by SEC delays, sentiment for cryptos have struggled immensely, especially given the chaos sparked by the bond market.

Sentiment could be improving given the SEC has just approved a handful of Ether futures ETFs.  Bitcoin future ETFs already exist, but the SEC decision to give approval to Ethereum is somewhat news considering it has always been thought as a bigger risk to getting the security tag.

Ethereum posted a nice rally to start the week following the ETF launches done by Valkyrie, VanEck, Proshares, and Bitwise.  The massive Ethereum ETF launch was to make sure everyone had a fair chance, which is what not happened a couple years ago for Bitcoin when BITO launched alone and dominated the ETF market share.

Ethereum Daily Chart

Ethereum’s Monday pump was faded on both disappointing ETF trading volumes and as prices quickly respected a confluence of resistance from the 50- and 200-day SMA. The death cross that formed at the end of August saw bearishness tentatively exhausted after making a low at $1531 on September 11th.

Ethereum could start attracting more interest once price closes above the $1810 level. Ethereum’s more diversified blockchain ecosystem has yet to trigger a gamechanger for the use-case argument for cryptos, but optimism remains that some of its products and offerings are driving the majority of the interest. If bearishness resumes, downside targets include $1510, which is the 50% retracement of the 2022 low to 2023 high move.

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